$37 million cryptocurrency scam case cracked, transnational crime network taken down by the U.S. Department of Justice

A cross-border crypto scam and money laundering case involving $37 million was recently exposed by the U.S. Department of Justice. 45-year-old Chinese national Su Jingliang was sentenced to nearly 4 years of federal prison for participating in this criminal network and ordered to pay over $26 million in restitution. The case involves 174 U.S. victims, with funds flowing across multiple countries and crypto platforms, fully reflecting the complexity and international nature of current crypto scams.

How the Cross-Border Scam Network Operates

According to the DOJ statement, Su Jingliang's criminal network employed multi-layered scam tactics. They first approached victims through everyday communication channels such as SMS, phone calls, and online dating platforms, using fake investment opportunities to lure them into so-called crypto investment projects. Subsequently, the criminals set up imitation trading websites, leading victims to believe they were engaging in legitimate crypto asset transactions.

The cleverness of this approach lies in its combination of traditional social engineering techniques and the technical features of modern crypto platforms, making it difficult for victims to distinguish real from fake. Based on the 174 confirmed U.S. victims, the scale and influence of this network are quite significant.

How Funds Were Laundered

The most noteworthy aspect is the flow of the scam funds. According to prosecutors, the funds went through the following stages:

| Transfer Stage | Specific Process | |----------------|------------------| | Step 1 | Funds from U.S. victims flowed into shell companies | | Step 2 | Transferred via crypto wallets | | Step 3 | Entered international banking systems | | Step 4 | Approximately $36.9 million transferred to Deltec Bank in the Bahamas | | Step 5 | Converted into USDT stablecoin | | Step 6 | Final transfer carried out by accomplices in Cambodia |

This process fully leverages the borderless nature of traditional financial systems and the cross-border convenience of crypto assets, attempting to evade regulatory tracking. Notably, the criminals chose to convert the funds into USDT, the largest stablecoin by market cap.

Why USDT Became a Money Laundering Tool

According to relevant information, USDT is the third-largest crypto asset globally, with an average daily trading volume exceeding $8.8 billion. The reasons why criminals prefer USDT include:

• High liquidity, facilitating quick exchanges and transfers
• Numerous trading pairs, allowing easy access to various exchanges
• As a stablecoin, its value remains relatively fixed, simplifying fund valuation
• Widespread cross-chain deployment, providing multiple transfer pathways

This also explains why regulators have increased their focus on stablecoins in recent years.

Investor Warnings

This case offers several clear warning signs:

• Investment opportunities actively promoted on social platforms often hide risks
• The authenticity of trading websites should be verified through official channels; do not judge solely by appearance
• Projects demanding quick transfers or using crypto assets for investment should be approached with caution
• Even well-known stablecoins can be used as vehicles for scam funds

Summary

The successful resolution of this case demonstrates that U.S. authorities have made significant progress in tracking cross-border crypto crimes. From scams and money laundering to international transfers, the entire chain has been cut off one by one. Su Jingliang's sentencing and the $26 million restitution send a clear message to global criminals.

For the crypto industry itself, this is not bad news. Effective law enforcement efforts highlight that on-chain tracking of crypto assets is becoming increasingly transparent. As long as investors stay vigilant, verify information sources, and choose legitimate platforms, they can greatly reduce the risk of falling victim to scams.